Citigroups earnings were down yesterday in big part due to a slump in TRADING revenues. The effect of regulation is taking it's toll on the investment banks. JPMorgan also down recently. This is a good thing for the markets. This is getting the sharks out of the waters and letting the market express the optimism that has been repressed for years.
Is there any better reason for the little guy to get back in?
Here is a link:
http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2012/01/17/bloomberg_articlesLXPGRZ1A74E901-LXY3H.DTL
Steel still acting good. Copper strong. S&P strong,(volume light, lack of Citi????) Nat gas down, GOOD! Banks trying to rally, probably short covering. Banks don't need to be a big part of a strong economy despite what some say. Banks are the tail on the dog. The tail should not wag the underlying economy, if you get my metaphor. I see a period of shrinking banks, there are too many banks leeching money out of the economy.......
It is shaping up to be a good year for the little trader. So far.....
Control your risk,
gh
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All comments are appreciated as it will give me a chance to adjust my content to any real people who may be out there. Thank you. gh